Mainstream Corporation holds 80 percent of Offenberg Company's voting shares, acquired on January 1, 20X1, at underlying book value. On January 1, 20X4, Mainstream purchased Offenberg bonds with a par value of $40,000. The bonds pay 10 percent interest annually on December 31 and mature on December 31, 20X8. Mainstream uses the fully adjusted equity method in accounting for its ownership in Offenberg. Partial balance sheet data for the two companies on December 31, 20X5, are as follows:

Requireda. Compute the gain or loss on bond retirement reported in the 20X4 consolidated income statement.b. What equity method entry would Mainstream make on its books related to the bond retirement in 20X5?c. Prepare the elimination entry needed to remove the effects of the intercorporate bond ownership in completing the consolidation worksheet for 20X5.d. What balance should be reported as consolidated retained earnings on December 31,20X5?